Proof of funds for Czech Business visa renewal
if you hope to extend your business visa or long-term residency in 2022, make sure that you don’t forget about any income invoicing for your annual tax report 2021. Your proof of income will be your annual tax report for 2021 for your visa extensions in 2022! The Immigration office has a fixed income calculation. If you are single, your final monthly income should be at least 18 000 CZK according to your annual tax report for 2021.
For family couples or families with children, clean income calculations are as follows.
The amount of the subsistence minimum
According to Government Regulation No. 409/2011 Coll. , the amount of the subsistence minimum for an individual is 3 860 CZK.
The amount of the subsistence minimum of a person who is determined to be first in order is CZK 3550 a month.
The monthly amount of the subsistence minimum of a person who is determined to be second in order is
CZK 3 200 for a person over 15 years, who is not a dependent child,
CZK 2 770 for a dependent child from 15 to 26 years,
CZK 2 420 for a dependent child from 6 to 15 years
CZK 1 970 for a dependent child under 6 years.
Costs for housing * updated January 1st, 2022
The highest amount of normative costs for housing since 1 January 2017 according to Government Regulation No. 449/2016 Coll. is:
CZK 8 775 for one person
CZK 12 205 for two people in a family
CZK 16 337 for three people in a family
CZK 20 077 for four and more people in a family
And you should add 2 841 CZK for social tax monthly and VZP Health insurance 2 627 CZK (if you are US citizen) monthly in 2022. For example, you are a family of US citizens living in the Czech Republic, you, your spouse and 4 years old child. Your clean income should be as follows:
Subsistence minimum 7 710 CZK + Costs for housing 15 116 CZK= 22 816 CZK
And if it is your first visa renewal you should add 5176 CZK social tax (in case both parents are business visa holders under trade license) and 4786 health insurance (in case both parents are business visa holders under trade license).
So the amount 32 778 CZK is your family’s monthly income according to immigration office calculation. And amount 32 778 CZK x 12 months= 393 336 this should be your minimum annual income after income taxes for 2021.
The Czech trade license holders can choose various types of tax options. Income tax is 15% of net income and there is a 30 840 CZK tax discount.
Method 60/40 is the most common. The collection of payment receipts or invoices from expenses is not necessary
It means a fixed 60% cost allowance and 40% income. For example, if total gross income for last year was 300 000 CZK, then 300 000 – 60% cost allowance( fixed expenses) = 120 000 clean income. 15% tax will be paid from 120 000 which means 120 000 -15%= 18 000 (tax amount)- 30 840 (tax discount) = 0 CZK (final tax amount).
In this example, taxes will not be paid. This method is convenient and the best solution for EU citizens and EU family members(partner visa)
We don’t recommend this method for other nationalities who need to renew their visas or residency permits in the future because income proof is required if they don’t have at least 500 000 CZK.
For the situation and calculation which was used above, other nationalities should use the method tax from the full amount for avoiding visa renewal rejections due to insufficient funds.